Our Contribution to a Competitive Swiss Financial Center

Drive!

Our contribution to a competitive Swiss financial center.

CONTENT

4 WELCOME TO SIX 28 Drive — EXPERTISE Nearly 2,600 employees throughout the world work hard each day to

6 Drive — PERFORMANCE ensure the quality and development Our world-class services drive the of our services. performance of our customers in Swiss and international markets. 30 DIVERSITY OF THE WORKFORCE 30 CORPORATE CULTURE AND VALUES 8 EXCHANGE SERVICES 31 WORKING AT SIX: THREE QUESTIONS TO 12 FINANCIAL INFORMATION CHIEF HR OFFICER SUSANNE BERGER 14 BANKING SERVICES 16 SIX WORLDWIDE

32 Drive — RESPONSIBILITY We are making a contribution

18 Drive — INNOVATION to society and the environment. Our innovative solutions drive the transformation of the financial 33 CORPORATE VOLUNTEERING industry. 34 SWISS FINANCE MUSEUM 34 SUSTAINABILITY AT SIX 20 INNOVATION AT SIX 22 FLAGSHIP PROJECTS 22 PROMOTING FINTECH AND START-UPS

24 Drive — STABILITY Without our high-performance infrastructure the Swiss economy would come to a standstill.

26 SUPERVISION AND REGULATION 27 COMPLIANCE AND DATA PROTECTION 27 SECURITY AND AVAILABILITY OF THE SYSTEMS WELCOME TO SIX

We are strengthening the international competitiveness of the Swiss financial center. Through top-class services and innovations. Through stability, expertise and responsibility.

WHAT WE STAND FOR Our corporate culture is shaped by four central values. Customer Focus: we generate added value for our customers. Ownership: we take respon sibility and drive innovation. Trust: we promote a culture of openness and mutual trust. Collaboration: we collaborate constructively with colleagues, clients and partners.

SIX DRIVE — 4 WHAT WE DO SIX operates the infrastructure for the Swiss financial center, thus ensuring the flow of information and money WHO WE WORK WITH between financial market SIX connects financial market players. SIX offers exchange participants in Switzerland services, financial information and throughout the world. and banking services – and is We are owned by around building a digital infrastructure 125 banks that are active in for the new millennium. the Swiss financial center. They are the main users of our infrastructure and our most important customers.

SIX DRIVE — 5 Input Drive! Output PERFORMANCE INNOVATION STABILITY EXPERTISE RESPONSIBILITY PERFORMANCE INNOVATION STABILITY EXPERTISE RESPONSIBILITY

Exchange Services Corporate Equity Ratio Headcount Corporate Volunteering Operating Income Digital Infrastructure Creditworthiness Employees Worldwide Energy Efficiency CHF 89.4 Venture Fund CHF 1.94 CHF 50 % 5sites + % + % 89.1 2,594 in four European countries No. 1 A 79 Its stable financial situation of our employees work in 2 employees in 20 countries work SIX is building SIX Digital Credit rating of SIX Group Ltd As a member of the Zurich Energy billion volunteered to work on social and billion enables SIX to invest further hard each day to ensure the Exchange: the world’s first fully according to Standard & Poor’s Switzerland. 21 % work in further Model, SIX has pledged to improve raised on the Swiss capital market by environmental projects in 2018. was generated by SIX in the 2018 million in its business. success, stability and security of integrated digital stock exchange. (S&P) 2018. 19 countries worldwide. its energy efficiency at the Swiss companies in 2018 and listed on SIX. Page 33 financial year. is being made available to start-ups six-group.com/annual-report the services provided by SIX. Page 19 six-group.com/annual-report Page 28 sites by two percent per year. Page 7 six-group.com/annual-report by SIX FinTech Ventures. Page 28 six-group.com/responsibility Page 22

Swiss Finance Financial F10 Incubator Data Protection Employees Environmental Group Net Profit Corporate Banking Services Apprenticeships Museum Information & Accelerator Protection Venture Fund CHF 2.88 610.5 8,583 32.4 100% 45 years beehives of employees received training on was the average age of our 63 4 start-ups were apprentices at SIX in 2018: visitors are cared for by SIX on the roof of billion million 30 the EU General Data Protection employees in 2018. start-ups were accepted into the F10 4 40 IT apprentices, 21 commercial showed an interest in the history Regulation (GDPR) in 2018. Page 30 the head office in Zurich-West. of net profit was generated by SIX received investment funding from transactions were processed by million Accelerator Program in 2018. apprentices and 2 customer of the Swiss financial center in Page 27 six-group.com/responsibility in 2018. The record result is the SIX FinTech Ventures in 2018. the SIC interbank clearing system f10.ch dialogue specialists. 2018 and visited the Swiss Finance financial instruments are covered in result of a successful transaction: Page 22 in 2018. six-group.com/careers Museum. the data universe of SIX. in 2018 SIX transferred its “Cards” Page 25 Page 34 Page 12 business unit to a strategic part- Hackathon Cyber Security Proportion of Women Environmental nership with the French company Management Worldline. Page 17 Hackathon Cyber Security Ongoing Education Banking Services six-group.com/annual-report Global Reporting 24 × 7 × 52 Initiative The Security Operations Center 2 billion 10.2 % Special Dividend 16,640 h – security events are collected and 48h of SIX operates round the clock 29 was the time allowed to Hackathon of the workforce at SIX is female. % were spent by employees of SIX

participants in order to program a every day of the year to protect the Page 30 38 correlated by the Security Opera- in internal training courses during was the year-on-year drop in the 293 2013 financial center from cyberattacks. participants attended one of tions Center of SIX every day and prototype for an innovative financial use of plastic cups by SIX at its Swiss 2018. was when SIX joined the Global million service. six-group.com/cybersecurity the Hackathons supported by SIX analyzed in real time for potential sites in 2018. In 2019 SIX is switching CHF 17.30 six-group.com/responsibility Reporting Initiative (GRI). From debit cards has been processed in Zurich, Singapore and Vienna security risks. Page 23 to FSC-certified paper cups. per share is being paid out to 2019 onwards, SIX will report by SIX in 2018 in Switzerland and in 2018. Page 21 six-group.com/responsibility shareholders by SIX following the on its corporate responsibility Liechtenstein. Page 23 record profit in 2018. commitment annually in accor- Page 14 Switzerland six-group.com/annual-report dance with GRI standards. Page 34 The headquarters of SIX is in Zurich.

Drive — PERFORMANCE

Our world-class services are the driving force behind our customers’ performance – in Switzerland and internationally.

EXCHANGE SERVICES Listing, trading, post-trading: the entire capital market value EXCHANGE chain under one reliable roof. SERVICES Capital FINANCIAL INFORMATION Raise Reference data, regulatory data, CHF indices: we are one of the world’s 89.4 leading providers of financial billion information. raised on the Swiss capital market and listed on SIX by BANKING SERVICES companies in 2018. Cards, cash, billing and payments: we have many years of expertise in the payments business.

SIX DRIVE — 6 Drive — PERFORMANCE

SIX Provides Direct Access to International Capital and Liquidity

For decades, Switzerland has been one of the world’s most attractive capital markets thanks to its globally recognized ability to innovate,

EXCHANGE SERVICES its competitiveness and its political and economic stability. The Swiss CORPORATES financial center boasts an extraordinarily high concentration of global TRUST corporations, financial services firms and potent investors. The Swiss stock exchange – owned and managed by SIX – provides companies with access to experienced, highly capitalized Swiss and international investors and high liquidity. This is how SIX plays a key role in financing growth and safeguarding the long-term prosperity of the Swiss economy.

SIX DRIVE — 7 Drive — PERFORMANCE

EXCHANGE SERVICES SIX owns and manages the Swiss stock exchange – making Switzerland one of Europe’s leading capital markets.

With a free-float market capitalization of EUR 1,076 billion, the Swiss stock exchange is the fourth biggest stock exchange in Europe. Measured against the comparatively small Swiss economy, the Swiss stock exchange is thus superior in size. The around 260 companies listed here include global corporations such as Nestlé, Novartis and Roche, that rank in the top European companies by market capitalization.

To boost the visibility of small and medium-sized enterprises (SMEs) on the Swiss stock exchange, SIX offers the Stage program. Stage is designed to help SMEs to increase their visibility among the essential stakeholders in the capital market in a targeted manner. Upon request, SMEs benefit from research coverage provided by experienced banks.

In 2018, the Swiss stock exchange recorded numerous listings: twelve companies went public, the highest number reached since 2001. Additionally, 270 ETFs, 345 bonds and 39,358 derivatives were listed for the first time. SIX is able to cope with this enormous amount thanks EXCHANGE SERVICES CORPORATES to a high level of automation. CUSTOMER FOCUS

“A listed company can efficiently raise additional capital to continue developing and expanding its business.”

As Head Primary Markets, Valeria Ceccarelli encourages new companies to go public (IPOs) and maintains relationships with those already listed.

SIX DRIVE — 8 Drive — PERFORMANCE

EXCHANGE SERVICES SIX offers the world’s INET technology, which is one Market highest liquidity for of the fastest and most up-to- Share trading in Swiss securities. date trading technologies in the world. SIX is also constantly The Swiss stock exchange is the investing in ways to improve largest trading venue for Swiss liquidity on the platform. This 70.8 % securities. A buy or sell order means that the difference for Swiss equities is more likely between bid and ask prices is to be executed faster here – also lower than at other European of trading in Swiss for large volumes – than trading venues. For the 20 most large caps (SLI stocks) anywhere else in the world. liquid Swiss large caps, SIX was conducted through SIX in 2018. The Swiss stock exchange’s offers the best price for 90 % of trading platform offers proven the trading day. reliability and security, even in periods of high volatility. It uses the highly efficient X-stream

EXCHANGE SERVICES FINANCIAL INSTITUTES CUSTOMER FOCUS

“Our order book quality and new functionalities led to noticeable price improvements in trading with Swiss equities.”

Christian Reuss is Head Sales in the Securities & Exchanges business unit.

SIX DRIVE — 9 Drive — PERFORMANCE

Global post-trade services, fully integrated: SIX supports its customers throughout the entire capital market value chain.

SIX is the only fully integrated financial market infrastructure in Europe. Nowhere else is the stock exchange combined with the entire post-trading chain and with real-time payment Listing processing under one roof.

SIX enables the automatic end-to-end data processing of securities transactions from order entry in the trading system of the Swiss stock exchange. Trading

SIX acts as a contractual party between trading partners throughout Europe, functioning as the central counterparty in order to reduce the risks for both buyer and seller. Clearing

SIX settles domestic and cross-border transactions electronically across all possible asset classes.

Settlement

SIX offers securities custody and comprehensive services for the Swiss market and 50 others.

Custody

SIX maintains the multicurrency repo trading platform * for more than 160 participants, including the Swiss National Securities Bank (SNB). Finance

SIX operates the Swiss Interbank Clearing system (SIC) for payments in Swiss francs and euroSIC for payments in euros. Payments

*More than 160 banks and insurance companies, Overnight) calculated by SIX is a reference including the Swiss National Bank (SNB), take interest rate for the Swiss repo market based on part in the Swiss repo market to supply themselves actual concluded transactions and quotes from and Switzerland’s economy with liquidity by the SIX repo trading platform. The SARON has depositing securities as collateral. They pledge to established itself as a transaction-based alterna- buy back those securities at a later date and tive to the consensus-based LIBOR standard. pay interest. The SARON (Swiss Average Rate

SIX DRIVE — 10 Drive — PERFORMANCE

Swiss Market Index (SMI): Valid Indicator of the Swiss Economy

The Swiss Market Index (SMI) calculated by SIX is Switzerland’s most important equity index and one of the most well-known benchmarks around the world: the SMI serves as an indicator of the overall Swiss FINANCIAL INFORMATION CORPORATES stock market as well as the Swiss economy. It mirrors the stock TRUST price movements of the 20 largest and most liquid companies listed on the Swiss stock exchange. Together they cover around 80 % of the total Swiss stock market capitalization.

SIX DRIVE — 11 Drive — PERFORMANCE

FINANCIAL powerful, linking the vast INFORMATION universe of data elements – SIX delivers high-quality including entities, terms and FINANCIAL financial data. prices – with millions of INFORMATION securities. SIX derives accurate SIX cleans, normalizes and securities pricing and valuation Reference enriches data, turning it into from reference and market data Data powerful, trusted information from over 1,500 sources world- that is of high value for firms wide and delivers it in near and financial institutions. The real time. SIX also captures all award-winning data feeds of SIX details on splits, mergers, 32.4 are comprehensive and consis- dividends and other corporate million tent, ensuring the integrity of actions for global securities a firm’s trading and reporting. and structures this information financial instruments From aggregation to delivery, for easy use and processing. are covered in the data universe of SIX. SIX continuously runs a set of quality checks to ensure that Moreover, SIX is a registered data is complete, up-to-date and and certified national number- always ready for immediate use. ing agency, issuing the security identification numbers in The SIX securities database is Switzerland, Liechtenstein and one of the world’s most Belgium.

FINANCIAL INFORMATION FINANCIAL INSTITUTES CUSTOMER FOCUS

“Financial data in its raw form can be overwhelming. We offer data packages tailored for specific business use cases, enabling our clients to order and pay for the data they actually need and consume.”

Laurent Lefèvre is the contact for SIX Flex, an innovative form of data delivery that allows clients to selectively access and consume data sets from our multi-million financial instrument database in full end-to-end compliance with data source owners.

SIX DRIVE — 12 Drive — PERFORMANCE

FINANCIAL INFORMATION FINANCIAL INSTITUTES CUSTOMER FOCUS

“For too long, data has been seen as a commodity without due consid- eration for its quality and value. We believe that data should be lever- aged to its full capability to achieve business goals.”

Phil Lynch is responsible for markets, products and partners in the financial information business.

With its regulatory services SIX eases Information for investors is thus accurate and the regulatory and compliance burden up-to-date at all times, which improves investment on its clients. recommendations. Data and regulatory documents are available centrally and uniformly Data is key for a firm’s compliance with complex for all hub participants, which also facilitates regulatory requirements: SIX offers banks a clear mutual exchange. Automated centralized added value in the areas of investor protection, processing by SIX of regulatory data and docu- tax and risk management by providing ready- ments reduces the costs for all regulatory packaged regulatory services supported by its hub participants. world-class reference data. Another compliance solution in demand is the Through its regulatory hub, for example, SIX has Sanctioned Securities Monitoring Service that built an innovative industry hub for regulatory allows financial institutions to receive, in an document management. The service is a one-stop efficient and transparent manner, information solution that does the heavy lifting of investor about which securities and regimes are currently protection compliance required by the European affected by global sanctions. This enables them financial market regulations UCITS, MiFID II to avoid fines and protect their reputation. and PRIIPs. SIX is also currently implementing the requirements of the Swiss Financial Services Further regulatory services offered by SIX at Act (FinSA). The regulatory hub provides relevant six-group.com/financial-information regulatory documents: they are automatically created, updated or linked to the original source.

SIX DRIVE — 13 Drive — PERFORMANCE

BANKING SERVICES SIX is the competence center for the Swiss payments business. BANKING SERVICES FINANCIAL INSTITUTES SIX is competent in all areas of the payments TRUST business: cards, cash, billing and payments. It harnesses the available synergies in order to develop and expand the Swiss payments system further, in an integrated manner that responds SIX Operates Switzerland’s Key to the needs of the banks. Payment System SIX develops and operates the Swiss Interbank Cards Clearing system (SIC) on behalf of, and under SIX processes card-based and mobile payments the supervision of, the Swiss National Bank. for the Swiss banks. In Switzerland and Liechten- SIX uses the interbank clearing system to stein, SIX is the preferred partner for processing process payments between financial institu- debit cards issued by the international card tions – on a gross basis and in real time. organizations Mastercard and Visa. It thus covers Nearly all Swiss and numerous foreign financial large portions of the value chain in the area institutions, as well as the Swiss National Bank of processing. Where synergies and economies of (SNB), are connected to the SIC system. scale occur, SIX undertakes operational processes Page 25 on behalf of the card issuers, such as combating card fraud or blocking cards outside normal office hours.

Cash Billing and Payments For many years, SIX has been a key partner of SIX operates the Switzerland-wide solution for the Swiss banks in processing ATM transactions. paying bills electronically via e-banking: eBill. All It has introduced the latest generation of Swiss banks have access to this solution, and software and is developing it further. SIX also more than 90 retail banks offer it to their operates ATMs: SIX monitors the machines and customers. Billers and recipients can use it to coordinates maintenance and cash processes. make payments with receipts completely Thanks to the associated standardization, volume digitally; the tedious and error-prone typing in of bundling and process optimization, banks can reference numbers, invoice amounts and focus on the core business. Outsourcing enables account information is no longer necessary. This them to save considerable costs as the service makes paying bills much more efficient and becomes more professional. secure for everyone.

SIX DRIVE — 14 Drive — PERFORMANCE

SIX enables banks to make the leap into the between the paper-based and digital worlds: digital future with payment transactions. bill recipients simply scan the QR code included Billers in Switzerland still send 80 % of their bills on the bill; it contains all the necessary payment in paper format. With the introduction of eBill, information. Swiss companies and banks are SIX is paving the way for a trend reversal and helping to carry out the associated conversion driving the digitalization of payment transactions. work, coordinated by SIX. The Swiss financial Meanwhile, QR billing is bridging the gap center plans to launch QR billing in mid-2020.

eBill: Efficiency for Billers in Switzerland

From telephone and electricity bills to credit card bills: with eBill, Swiss consumers receive their bills digitally in their e-banking system – so the bills go straight to where they are paid. But bill recipients are not the only ones to benefit. Sending a paper bill costs the biller five Swiss francs on average: printing, packaging, posting, issuing BANKING SERVICES reminders and so on. With eBill, billers save more than just money. CORPORATES CUSTOMER FOCUS They also optimize their cash flow. Feedback from numerous companies shows that consumers pay their invoices more reliably with eBill. Companies are therefore embracing eBill. In 2018 alone, SIX gained four new major eBill clients. These include Zurich Insurance Group and Serafe, the national collection agency for the radio and television fee in Switzerland.

SIX DRIVE — 15 Drive — PERFORMANCE

SIX: A SWISS COMPANY WITH AN INTERNATIONAL APPEAL With its globally networked infra structure, worldwide presence and international partners, SIX ensures the connectivity and attractiveness of the Swiss financial center.

SIX Is Present in 20 Countries Worldwide

Switzerland Denmark Morocco Austria Sweden Zurich Copenhagen Casablanca Vienna Stockholm Olten Biel France Monaco Poland UK Geneva Paris Warsaw London Edinburgh Belgium Ireland Netherlands Singapore Brussels Dublin Amsterdam USA New York Germany Italy Norway Japan Stamford CT Frankfurt Milan Oslo Tokyo Boston San Francisco Luxembourg Spain Madrid

SIX DRIVE — 16 Drive — PERFORMANCE

EXCHANGE SERVICES Share of Turnover for Swiss Blue Chip Trading Securities Custody

■ UK 63.47% ■ Switzerland 20.69% ■ France 6.93% 51 ■ Ireland 5.40% markets ■ Netherlands 3.14% ■ Germany 0.47% are ■ Liechtenstein 0.17% covered by SIX.

Data FINANCIAL INFORMATION Top Markets Based on Revenues Aggregation 1,500 2 1 sources 3

worldwide are used by SIX to gather the raw data for its financial information. rane Switzerland S BANKING SERVICES na Partner in the European payments business.

Worldline TWINT Swiss Euro Clearing Bank This French company, which With around 1.2 million The Swiss Euro Clearing Bank is listed on Euronext, is the registered users, TWINT is the (SECB) is a correspondent leading – and biggest – provider most widely used payment bank for financial institutions, in the European payments app in Switzerland. TWINT AG mainly from Switzerland and segment. SIX owns 27 % of the belongs to SIX, Worldline and Liechtenstein. It ensures their shares, which makes it the Switzerland’s biggest banks: liquidity for payment trans- second-biggest shareholder. Banque Cantonale Vaudoise, actions in euros. In 2019, SIX Paris, France Credit Suisse, PostFinance, increased its stake in SECB Raiffeisen, UBS and Zürcher from 25 % to 100 %, thus taking Kantonalbank. over the SECB completely. Zurich, Switzerland Frankfurt, Germany

SIX DRIVE — 17 Drive — INNOVATION

Drive — INNOVATION

As a central player in the Swiss financial center, SIX is optimally positioned to take an active role in shaping its future. Our innovative solutions drive the transformation of the industry.

INNOVATION AT SIX

DIGITAL We identify relevant new approaches INFRASTRUCTURE and use them to develop services SIX Digital that adequately meet the challenges Exchange of our clients. FLAGSHIP PROJECTS No. In collaboration with our partners we 1 are constantly developing innovative SIX is building the solutions that offer added value to the world’s first digital stock exchange – financial center. secure, regulated and fully integrated.

ENCOURAGING FINTECH AND START-UPS We support ideas and young companies with the potential to open up new perspectives for the Swiss financial center.

SIX DRIVE — 18 Drive — INNOVATION

Securities Transactions for the New Millennium

SIX is building the world’s first digital stock exchange. SIX Digital Exchange (SDX) is based on Distributed Ledger Technology: a fully integrated platform which enables the trading, settlement and DIGITAL INFRASTRUCTURE custody of digital assets in real time – and is securely regulated. The EXCHANGE SERVICES OWNERSHIP real, instant transfer of assets in tokenized form releases millions of Swiss francs that are currently tied up as collateral. Tokenized assets may be digitalized securities, digital currencies or one day even non- bankable assets such as paintings. Banks will soon be able to launch new investment products and enable all their customers to achieve broadly diversified portfolios: a token can be divided into any number of parts.

SIX DRIVE — 19 Drive — INNOVATION

INNOVATION AT SIX SIX uses an internal innovation process to develop SIX develops future-ready financial solutions as far as the early stage of market technology. maturity and then makes them available to pilot customers to give direct feedback. SIX is intensively engaged with innovation and digitalization. We have set up our own central SIX also develops future scenarios to help reach business unit in this area, to bring together all sound decisions regarding potential areas for the company’s innovation activities. Many of our innovation and the targeted development of new employees are involved: anyone can use an products and services. online tool at any time to indicate where there is a need for new solutions or where there are The results of our studies are available to opportunities. When these ideas have potential, download as white paper: six-group.com/innovation

INNOVATION DIGITAL INFRASTRUCTURE OWNERSHIP COLLABORATION

“Our picture of the future indicates where the financial industry needs to develop. We can then innovate in a targeted way and help shape the future of the financial center.”

Andreas Sprock, Head Innovation Management, introduced the design and analysis of future scenarios at SIX. They are used as a basis for decision-making and to contribute to the public debate.

SIX DRIVE — 20 Drive — INNOVATION

Cyber Security for the Swiss Financial Center

In order to provide optimal protection against cyberattacks for the IT network operated on behalf of the Swiss financial center, in 2018 SIX opened the first Security Operations Center (SOC) in Switzerland that DIGITAL INFRASTRUCTURE focuses exclusively on the security needs and regulatory requirements of FINANCIAL INSTITUTES COLLABORATION the financial industry. Every day, the SOC monitors up to two billion access attempts, and as many as 30,000 per second at peak times. Often, it is only by considering the wider context that the security analysts at SIX can determine whether one of these access attempts poses a security risk: SIX gathers and evaluates data from various sources and augments the information with its own research and observations. SIX also supplements the data with findings from its exchange of information with other financial market participants. Medium-sized and small financial service providers, in particular, benefit from this threat intelligence. They obtain a cyber security solution that can otherwise only be developed and afforded by the big banks. six-group.com/cybersecurity

SIX DRIVE — 21 Drive — INNOVATION

FLAGSHIP PROJECTS sensitive data. We are thus responding to the SIX develops and expands digital banks’ growing need for secure, local and infrastructures. flexible cloud services. It is not just banks, but also insurers, health insurance funds and SIX is working on various “flagship projects” other companies that stand to benefit. Further- with partners from the financial and IT indus- more, SIX is collaborating with leading private tries. We expect these projects to bring excep- banks on a platform to enable standardized tional added value for our customers and the Know-Your-Customer processes and transaction Swiss financial center as a whole. monitoring. In the area of cyber security, we will also soon be offering banks and insurance One of the projects is Swiss Cloud, a Swiss cloud companies a platform for exchanging security- infrastructure for the secure processing of related information.

PROMOTING FINTECH – “Value3” offers solutions for AND START-UPS risk management and SIX supports fledgling automated advisory services enterprises. (robo-advisory). – “PassOn” enables the transfer SIX set up a CHF 50 million of digital assets as part CORPORATE corporate venture fund in 2018 of data inheritance and estate VENTURE FUND to promote innovation in the planning. SIX FinTech Swiss financial center: SIX Ventures FinTech Ventures invests in Since 2015, the F10 Incubator start-ups with the potential to & Accelerator founded by SIX become successfully estab- has been nurturing the develop- CHF lished companies and generate ment of start-ups that have lasting benefits for the Swiss the potential to open up new 50 financial market. perspectives for the entire million Swiss financial center. SIX is In 2018, SIX FinTech Ventures one of nine corporate members

is being made available invested in four start-ups: and the main sponsor. to start-ups by SIX. – “Shift Cryptosecurity” develops hardware and software to protect digital assets. – “vestr” supports the creation and life cycle management of actively managed certificates.

SIX DRIVE — 22 Drive — INNOVATION

SIX Uses Hackathons to Scout for Tomorrow’s Ideas and Talent

SIX makes use of Hackathons to discover trends, talent and promising business ideas. Creative minds from the worlds of business, IT or design are given a variety of tasks and challenged to develop a functional INNOVATION COLLABORATION prototype and a suitable business model for it within 48 hours. In 2018, 293 enthusiastic participants attended: SIX and F10 organized three Hackathons, one in Zurich, one in Vienna and one in Singapore.

SIX DRIVE — 23 Drive — STABILITY

Drive — STABILITY

Without our high-performance infrastructure the Swiss economy would come to a standstill. SIX makes a key contribution to the stability and security of the financial center.

SUPERVISION AND REGULATION BANKING Our systemically important infra- SERVICES structure is subject to government Interbank supervision and monitoring. Payments COMPLIANCE AND DATA PROTECTION We aim to set a good example in the 610.5 financial market. Protecting personal million data is our top priority. transactions were processed by the SIC interbank clearing SECURITY AND STABILITY OF THE SYSTEMS system in 2018. We ensure that our systems function stably and smoothly.

SIX DRIVE — 24 Drive — STABILITY

Efficient, Stable and Secure: Transactions via SIX

The smooth handling of payments and securities transactions is fundamental to the Swiss economy. Disruptions may lead to severe credit and liquidity problems and jeopardize the stability of the financial

EXCHANGE SERVICES system. SIX operates the Swiss Interbank Clearing system (SIC) on behalf BANKING SERVICES of, and under the supervision of, the Swiss National Bank (SNB); the AUTHORITIES TRUST SNB oversees the payment system and ensures that the connected banks have sufficient liquidity. Under the roof of SIX, SIC is connected to the trading system of the Swiss stock exchange and the system for processing and settling securities. This infrastructure, which is known as the Swiss Value Chain, is unique in Europe. Integrated payment processing improves the banks’ liquidity, thus speeding up payment and making securities transactions particularly efficient, stable and secure.

SIX DRIVE — 25 Drive — STABILITY

SUPERVISION AND REGULATION Infrastructures and the European regulations The smooth handling of payments (especially MiFID II and EMIR). and securities is fundamental to the Swiss economy. The Swiss National Bank monitors the systemically important infrastructure of SIX or rather All entities of SIX, engaged in securities trading the legal entities that operate it. This includes and securities settlement are subject to the SIX Interbank Clearing operating the interbank direct supervision of FINMA and to the Swiss payment system SIC, SIX SIS operating the Financial Market Infrastructure Act (FMIA). securities settlement system SECOM, and SIX x-clear, which acts as the central counterparty Because of its international business activities for trades on the stock exchange, thereby SIX also follows international standards such reducing the counterparty risk. as CPMI-IOSCO Principles for Financial Market

AUTHORITIES Self-regulation CORPORATES FINANCIAL INSTITUTES of the Swiss TRUST Stock Exchange

The Swiss stock exchange has a legal mandate Exchange Regulation AG. This safeguards and to maintain an independent regulatory and strengthens its autonomy in relation to the monitoring organization. The regulations for operating activities of the stock exchange and issuers, participants and traders are set by the the Group. Regulatory Board, and judgments are passed by It is of fundamental importance to the Swiss the three judicial bodies: Sanctions Commission, financial center to have a smoothly functioning Appeals Board and Board of Arbitration. SIX system of regulation that encourages investors Exchange Regulation is responsible for enforcing to trust the exchange, thus boosting liquidity and implementing the regulations. significantly and contributing to the competitive- SIX Exchange Regulation is independent from ness of the exchange. The self-regulation of the the management of SIX and reports directly to exchange has proven its worth: it is close to the the Chairman of the Board of Directors of SIX market, flexible, fast, based on years of experience, Group. Since May 2018, SIX Exchange Regulation and reaches very high standards of quality and has been a limited company in its own right: SIX professionalism. six-exchange-regulation.com

SIX DRIVE — 26 Drive — STABILITY

COMPLIANCE AND DATA PROTECTION SIX aims to set a good example in the financial market. DATA PROTECTION Staff As an infrastructure service provider in the securities, payments and financial information Trainings business, SIX has a high level of corporate responsibility. SIX and all its employees naturally comply with local, national and international laws and regulations. 100 %

In the course of its business activities, SIX also collects and processes a large volume of data. of the employees of SIX Protecting the data is its top priority. SIX believes received training on the EU General Data that its trusting business relationships are Protection Regulation founded on safeguarding the personal rights (EU GDPR) in 2018. and privacy of employees, customers, interested parties and business partners, and complying with national and international legal requirements.

SECURITY AND operations are switched to AVAILABILITY OF the backup data center. Thanks THE SYSTEMS to its dedicated Business SIX ensures that its systems Continuity Management, function stably and smoothly. SIX can react effectively and rapidly to emergencies or The systems of SIX process large crises. SIX thus ensures that volumes of information each even in a crisis, its services day – quickly and reliably; they remain available or can rapidly are able to withstand situations be restored. SIX has developed of extreme stress. In order to business continuity plans ensure continuous operations, for all the relevant business the data centers are also processes and tests them equipped with independent regularly. and redundant power supplies as standard. In the event of a long-lasting power cut,

SIX DRIVE — 27 Drive — EXPERTISE

Drive — EXPERTISE

Nearly 2,600 employees in 20 countries throughout the world work hard each day to ensure the quality and development of our services.

DIVERSITY OF THE WORKFORCE From acknowledged experts to EMPLOYEES goal-oriented youngsters: our work- WORLDWIDE force includes people with a wide Nationali- variety of professional backgrounds, ties training and experience. CORPORATE CULTURE AND VALUES 50 We promote a culture of openness and mutual trust, as well as the People from 50 different nations courage to take responsibility and are working at SIX in 20 countries drive innovations forward. worldwide.

SIX AS AN EMPLOYER Susanne Berger, Chief Human Resources Officer, on what makes SIX an attractive employer.

SIX DRIVE — 28 ((Kreisel-Pikto auf: Expertise (rot) – alle dunkelblauen Kreiselemente – Employees (grau) – alle hellblauen Kreiselemente))

Drive — EXPERTISE

SIX benefits from the diverse expertise of its employees and strives to encourage even more diversity within the company.

From financial market experts to IT whiz kids, from product managers to compliance specialists: SIX employs people with a huge variety of EMPLOYEES CUSTOMER FOCUS experience and know-how. We are represented in 20 countries throughout COLLABORATION OWNERSHIP the world, although 79 % of our employees work in Switzerland. Almost TRUST a third of our workforce is female; the average age is 45. SIX would like to encourage even more diversity at the company in future. We have therefore launched an annual graduate program, for example. University graduates spend 18 months gaining an insight into different types of work at SIX, expanding their knowledge by means of an individually tailored course program.

SIX DRIVE — 29 Drive — EXPERTISE

DIVERSITY OF THE WORKFORCE

Gender Distribution at SIX DIVERSITY

■ weiblich 758 ■ feminine 758 Proportion ■ ■ masculine männlich1,836 1836 of Women Total employeesTotal Mitarbeitende2,594 2594

29 %

of the workforce at SIX is female.

DIVERSITY Age Distribution at SIX

■ Average ■ under 30 8.49% under 30 8.49% ■ Age ■ 30–50 years 57.75% 30–50 years 57.75% ■ over 50 years 33.73% ■ over 50 years 33.73% 45

years is the average age of our employees.

CORPORATE CULTURE ship and Trust. We expect and AND VALUES foster a client-oriented way A shared set of values binds of thinking and working in all us together at SIX. areas. We encourage our employees to show initiative Our corporate culture is based and take responsibility. And on four values: Customer we strive to create a culture Focus, Collaboration, Owner- of openness and mutual trust.

SIX DRIVE — 30 ((Kreisel-Pikto auf: Expertise (rot) – alle dunkelblauen Kreiselemente – Employees (grau) – alle hellblauen Kreiselemente))

Drive — EXPERTISE

Susanne Berger has been Chief Human Resources Officer since 1 November 2018 and is a member of the Extended Executive Board.

“A person needs to see meaning in what they do before they can produce optimal performance.”

Susanne, what do you think we demand from our jobs in the 21st century? I am convinced that we look for autonomy, flexibility and meaning in our EMPLOYEES work. It’s motivating to take responsibility for what you’re doing, set CUSTOMER FOCUS COLLABORATION yourself goals and see your own ideas turn into reality. Also, people want OWNERSHIP to arrange their work and organize their days flexibly. TRUST

How does SIX respond to these demands? In 2018 we redefined our shared set of values and we encourage our employees to explore them actively in workshops. Customer Focus, Collaboration, Ownership, Trust: can I identify with them? Do these values agree with my own? How can I live and exemplify the values in my day-to-day work? Each of our employees needs to answer these questions for themselves.

In your view, what makes SIX an attractive employer? SIX is uniquely well positioned as a company: we offer job security and good working conditions – all in the exciting and dynamic environment of IT and fintech. Our focus on innovation promotes personal initiative, creativity and new ideas. Over the next few years we want to make flexible working even easier, and promote diversity in the company to an even greater extent.

SIX DRIVE — 31 Drive — RESPONSIBILITY

As a company that operates internationally, SIX believes it has a respon sibility towards society and the communities in which it is located. By imparting specialist knowledge and through voluntary work SIX makes a significant contribution in CORPORATE VOLUNTEERING this respect. Social Days

CORPORATE VOLUNTEERING On the Social Days, we do voluntary 5 work to support environmental and sites social projects. in four European countries volunteered to work on social and SWISS FINANCE MUSEUM environmental projects in 2018. A multimedia exhibition at our head office illustrates the development of the stock exchange and the financial system.

SUSTAINABILITY AT SIX Our business and our company are geared towards sustainability and longevity.

SIX DRIVE — 32 Drive — RESPONSIBILITY

Corporate Volunteering Is a Tradition at SIX

The Social Days at SIX traditionally kick off after the summer holidays. What began in Switzerland in 2011 has meanwhile turned into a Europe-wide commitment: between September and November 2018 over a hundred colleagues in four different countries spent a day doing voluntary work. They helped at a shelter for the homeless (London) EMPLOYEES COLLABORATION or at a clothes donation point for the needy (Luxembourg). They gave children from low-income families the opportunity to visit an amusement park (Paris). They assisted Swiss citizens from immigrant backgrounds to apply for jobs (Zurich) or got stuck in at various Swiss nature conservation areas.

SIX DRIVE — 33 Drive — RESPONSIBILITY

FINANCIAL KNOWLEDGE SWISS FINANCE Tuesday. Moreover, the MUSEUM museum offers lectures and Swiss Switzerland is known for its events covering various current Finance banks. The head office of SIX economic topics. Museum in Zurich is home to the first and only financial museum In June 2018, the museum of the country. opened a special exhibition on the 30th anniversary of the 8,583 In a multimedia exhibition, the leading Swiss index SMI taking visitors museum explains the origins it as an opportunity to have of the economic system and the a closer look at equity indices role of the stock market to as such. The exhibition informed themselves visitors. Since 2017, it is located lasts until July 2019. In 2019, the about the Swiss financial system at our Zurich headquarters museum also offers special and the Swiss stock and open to the public from guided tours on Alfred Escher, exchange in 2018. Monday to Friday. Public the founding father of guided tours are held every the Swiss financial center. finanzmuseum.ch

SUSTAINABILITY AT SIX In its Corporate Responsibility GLOBAL REPORTING INITIATIVE SIX has formulated three Report SIX reports annually strategic sustainability on the objectives and progress Membership principles that encompass of its commitment. its responsibility as a business and to society. Further information at since six-group.com/responsibility With its measures SIX focuses on 2013 – the stability and security of the Swiss financial center – its responsibility as an From 2019 onwards, SIX reports annually on employer its Corporate Respon- – the good of society and the sibility engagement protection of the environment according to GRI standards.

SIX DRIVE — 34 Publisher SIX Group Services Ltd Pfingstweidstrasse 110 P.O. Box 8021 Zurich Switzerland T +41 58 399 21 11 six-group.com

Concept and Editorial Management SIX Group Services Ltd Zurich

Design and Realization NeidhartSchön AG, Zurich

Translations Lionbridge Switzerland AG Glattbrugg-Zürich

Photography Gian Marco Castelberg Anne Morgenstern Milan Rohrer Nils Sandmeier Roland Tännler Barbara Werren

SIX Group Ltd, Zurich 03/2019